Overview:
Tax Overview of Travel, Entertainment, Gift and Car Expenses.
Prerequisite: None
Course level: Basic
Advanced preparation: None
Teaching method: Online study
Recommended hours: 3
Summary of Contents:
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Travel expenses, tax home, meals, travel outside the US, conventions
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Entertainment expenses, directly-related, associated, 50% limit
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Business gift expenses
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Local transportation, standard mileage, actual expenses, leasing a car
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Recordkeeping
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Reporting expenses, accountable and nonaccountable plans, rules for independent contractors, Form 2106 example
Lesson and Objectives |
Reading
Assignment |
| Travel, Entertainment, Gift, and Car Expenses |
|
1. Travel |
Chapter 1 |
The learning objectives for this lesson are to gain an understanding of:
- Traveling away from home
- Temporary assignment or job
- What travel expenses are deductible?
|
|
| 2. Entertainment |
Chapter 2 |
The learning objectives for this lesson are to gain an understanding of:
- What entertainment expenses are deductible?
- 50% limit
|
|
| 3. Gifts |
Chapter 3 |
The learning objectives for this lesson are to gain an understanding of:
- The $25 limit
- Gifts vs. entertainment
|
|
| 4. Transportation |
Chapter 4 |
The learning objectives for this lesson are to gain an understanding of:
- Car expenses
- Disposition of a car
|
|
| 5. Recordkeeping |
Chapter 5 |
The learning objectives for this lesson are to gain an understanding of:
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Sample Exam Questions:
34. John is an employee who receives payments under a nonaccountable plan. John can convert these amounts to payments under an accountable plan by voluntarily accounting to his employer for the expenses and voluntarily returning any excess reimbursements to his employer.
A. True
B. False
35. If your employer uses a car expense reimbursement method where they provide an allowance to you, and that allowance includes a combination of payments covering fixed and variable costs (such as a cents-per-mile rate plus a flat amount for fixed costs like depreciation and insurance), this method is known as:
A. Hybrid-per-mile method
B. An unallowable method
C. FAVR
D. M & IE
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